Building Leaders for a Bright Future
American Association of Blacks in EnergyMay 20, 2010
Genevieve (Gen) Tuchow VP, Human Resources
American Electric Power
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Focus for Today How AEP is building it’s future leadership talent
bench
Evolving talent planning from reactionary succession planning to more proactive talent development
Engaging leadership in identifying and developing future leadership talent
Accelerating the development of a leadership talent pool
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Company Overview 5.2 million customers in 11 states Industry-leading size and scale of assets:
Coal & transportation assets◦ Control over 9,000 railcars◦ Own/lease and operate over 2,900 barges &
80 towboats◦ Coal handling terminal with 20 million tons
of capacity Over 21,000 employees
AEP Generation Portfolio
Coal Gas Nuclear Hydro Wind
68% 23% 6% 2% 1%
Source: Company research
Asset Size
IndustryRank
Domestic Generation ~37,700 MW # 2
Transmission ~39,000 miles # 1
Distribution ~213,000 miles # 1
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Leadership Talent Planning
Purpose - Provide AEP a sustainable supply of quality leaders at all levels to meet challenges today and tomorrow
Overall …◦ Create shared understanding and development of talent at AEP◦ Foster the diversity of AEP’s talent pool◦ Embed structure, support and accountability for talent
development
Do we have the leadership talent needed to execute AEP’s
strategies today and in the future?
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AEP’s Leadership Talent Pool
TargetedDevelopment
Current year’s Current year’s considerations considerations
LeadershipTalentPool
Past Performance & Past Performance & Leadership Potential FactorsLeadership Potential Factors
All AEPEmployees
• Contains approximately 15% of AEP population• Individuals highly regarded and believed to have
the ability to be successful in a leadership position at least one level higher than current position
• Replacement Planning used to further develop / prepare these individuals
• Contains all AEP employees• Performance Management Review, Individual
Development Plans, etc. used to further develop these individuals
• Once a year a subset of the leadership talent pool selected to participate in Targeted Development
• Nominated by business unit leaders and confirmed by senior executives
• Individuals believed to have the ability to be successful in a leadership position at least two levels higher and in other business units
• Special assessments, mentoring, stretch assignments, etc. used to develop these individuals
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Building Leaders at all Levels
Emerging Mid-Level Leaders
Emerging Bus. Unit Leaders
Emerging Senior
Executives
Emerging Front-line Leader
• Ind. Contributors
• Professionals
• Non-exempt leaders
Selected From
Preparing For
• Superintendent
• First Level Manager
• Supervisor
• Superintendent
• First Level Manager
• Supervisor
• Director
• Manager
• Director
• Manager
• Senior VP
• President
• Vice President
• Senior VP
• President
• Vice President
• Chairman
• EVP, Senior VP
• Other EC Roles
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Targeted Development Process
Success Profile
Talent Review andNomination
Individual Career Discussions
SuccessProfileSuccessProfile
Assessment
Create Development Plan
ProgramOrientation & Kick-off
1HR Strategy & Development
MENTORING MENTORING PROGRAMPROGRAM
Kick-Off Meeting
Participant selection and mentor assignment.
Participate in Development Activities
Track ProgressMonthly – Mentor reviews
Quarterly – Talent Board UpdatesAnnually – Process metrics
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Talent Boards
Ensure ongoing quality of leadership Success Profiles (e.g., future focus, clarity, relevance, etc.)
Select a given year’s participants Guide mentor matches Match development opportunities across the organization to
development priorities of pool members Review the development plans of pool members for a higher
level perspective Monitor and reinforce development progress of pool
members Champion the process and talent with other organization
leaders
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Overall Results Increasing supply of leaders.
Jump-started organization’s developmental focus.
Talent development as key responsibility vs. “nice to do.”
Shaping a development culture (e.g., candid career discussions, ownership of development, selection criteria, etc.).
Adapting process within operating units for those expected to rise only within their group.
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Talent Scorecard
Emerging Sr. Executive: x 71% 64% 21%Emerging Business Unit Leader: x 58% 35% 23%Emerging Mid-level Leader: x 66% 16% 16%Emerging Frontline Leader: x 12% 0% 8%
Leadership Level Retention
Job Moves (lateral/promotions)
Achieved Level
Cross-unit moves
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Executive Comments "We've seen a remarkable increase in the self-awareness of
[targeted development participants]."
"This has been an excellent start in our challenge to build our future leaders."
"The structure has helped."
“There is an observable difference in many of our participants.”
"We've all gotten exposure to individuals that we otherwise would not have had."
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Key Take Aways Key benefits include the "softer" aspects: visibility of talent, relationships
among pool members, interaction with senior leaders, etc.
Executive involvement key.
Participant selection is a work in progress.
Selection of the “right” mentors and coaches essential.
It can be done.
It’s never over!